Question
Please use the following Income Statement and Balance sheet for Questions 2 to 6 Income Statement for Fair Company 2016 Revenue $ 9,610 less COGS
Please use the following Income Statement and Balance sheet for Questions 2 to 6
| Income Statement for Fair Company | 2016 |
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| Revenue | $ 9,610 |
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less | COGS | $ 6,310 |
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less | Depreciation | $ 1,370 |
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| Gross Income | $ 1,930 |
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less | S,G&A | $ - |
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| EBIT | $ 1,930 |
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less | Interest Expense | $ 630 |
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| taxable income | $ 1,300 |
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| Taxes | $ 455 |
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| Net Income | $ 845 |
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Balance Sheet for Fair Company |
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Assets |
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| Liabilities and Shareholder Equity |
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| 2015 | 2016 |
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| 2015 | 2016 |
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Cash | 310 | 405 |
| Accounts Payable | 2720 | 2570 |
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Accounts receivable | 2640 | 3055 |
| Notes Payable | 100 | 0 |
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Inventory | 3275 | 3850 |
| total current | 2820 | 2570 |
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Pre-paid expenses | 0 | 0 |
| Long-term debt | 7875 | 8100 |
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total current | $ 6,225 | $ 7,310 |
| Common Stock | 5000 | 5250 |
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Next fixed assets (PPE) | $ 10,960 | 10670 |
| Retained Earnings | 1490 | 2060 |
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| Total Assets | $ 17,185 | $ 17,980 |
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| $ 17,185 | $ 17,980 |
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What is the operating cash flow for 2016? A. $845 B. $1,930 C. $2,215 D. $2,845 E. $3,060
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